Bankmecu looks set to acquire another credit union, after members of regional Victorian mutual Swan Hill voted for the merger.
The Australian Prudential Regulation Authority has approved the application and proposal for Swan Hill to merge with Bankmecu, Australia’s largest customer-owned bank.
Swan Hill has around 3000 members and $30 million of assets. Bankmecu has around 120,000 members and $3 billion of assets.
The Swan Hill board believes the merger will provide greater benefits to members including more competitive pricing, additional services, capacity to invest in the community, technology and compliance as well as stronger capital.
“We are recommending this merger to members because we want them to continue to bank with a customer-owned banking institution where their needs and those of the local community are put first,” Swan Hill chair Gail Kenyon said.
“Smaller financial institutions are faced with ever-increasing regulatory and compliance requirements and competition from larger banks, and joining Bankmecu would mean becoming part of a financial institution that has the necessary resources to better manage these regulatory demands.”
The merger will come into effect on 1 June, subject to final approval by APRA.
Bankmecu's last merger was with Fitzroy and Carlton Credit Co-operative early last year. More than 50 other credit unions have merged with Bankmecu since it was founded in 2003.
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